China Agritech Signs $7.8 Million Liquid Organic Fertilizer Contract

The order is expected to contribute $7.8 million to China Agritech’s revenue over the term of the contract.

Sinochem Fertilizer is the largest fertilizer distributor in China with an established multi-level distribution network comprised of 17 sales subsidiaries and 1,600 sales points. The distribution network covers 26 provinces with first tier distributors in major cities and second tier distributors in counties and rural areas. China Agritech and Sinochem Fertilizer began negotiations in July 2007 when China Agritech supplied a small order of fertilizer to Sinochem Fertilizer for test sales in Hainan and Jiangsu Provinces. Sinochem Fertilizer experienced strong demand for the organic liquid fertilizer and subsequently signed a one-year contract with China Agritech for 1,000 metric tons.

“We are pleased to have obtained this contract with Sinochem Fertilizer, as we are one of a handful of liquid organic producers with the capacity to fulfill an order of this size. We feel that this contract reinforces the market opportunity for Green Vitality and its effectiveness in enhancing the yield and quality of a variety of agriculture products,” commented Mr. Yu Chang, CEO of China Agritech, Inc. “We also believe our relationship with Sinochem Fertilizer will contribute to our revenue growth in the future and increase our penetration within China.”-PR Newswire